Paytm Payments Bank has suffered another setback. Employees Provident Fund Organization (EPFO) has banned deposits and credits through Payments Bank. EPFO, issuing a circular on February 8, has instructed its field offices to block deposits and credits in EPF accounts linked to Paytm Payments Bank.
Claims for Paytm Bank accounts will not be accepted
It has been said in the circular that claims for accounts linked to Paytm Payments Bank should not be accepted. EPFO had given approval to make EPF payments in the accounts of Paytm Payments Bank and Airtel Payments Bank only last year. Let us tell you that on January 31, RBI had announced a ban on deposit, credit and top up in the account of Paytm Payments Bank from February 29.
RBI had banned wallet service
While taking the decision, RBI had said that despite several warnings, Paytm Payments Bank did not follow the rules. RBI Deputy Governor Swaminathan Janakiraman said the bank was given enough time to comply with the rules. But even after the passage of time, due to shortcomings being found, this strict step had to be taken.
Earlier, Paytm's parent company One 97 Communications has decided to form a Group Advisory Committee under the chairmanship of former SEBI Chairman M Damodaran. This committee will work with the company's board to strengthen regulatory issues.
According to the regulatory filing, apart from M Damodaran, the group advisory will also include former ICAI President MM Chitale and former Andhra Bank Chairman and MD R Ramachandran.
Round of resignations started in the company
After the action of RBI, the round of resignations on big posts of the company has also started. Paytm's independent director Manju Aggarwal has resigned from her post. Manju Aggarwal, who has been with the company since May 2021, decided to resign from the board.
Paytm Payment Bank's Independent Director Shinjini Kumar has also resigned from her post. Not only the officers but also the employees of Paytm are now looking for a new job. Seeing the company's future in limbo, Paytm employees have started looking for jobs.
According to the report, many level officers working in Paytm are looking for jobs in other companies. Many employees working in tech, merchant banking, sales and marketing segments are looking for a way out of Paytm.